SESSION
JUL/AUG 2021
PROGRAM
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SEMESTER
II
COURSE CODE & NAME
DBB1202 – FINANCIAL ACCOUNTING
Question 1(a)
Bookkeeping is a process of recording and organizing all the business transactions that have occurred in the course of business. Bookkeeping is an integral part of accounting and largely focuses on recording day-to-day financial transactions of the business.
All the financial transactions such as sales earned revenue, payment of taxes, earned interest, payroll and other operational expenses, loans investments etc. are recorded in books of accounts.
The way the bookkeeping is managed determines the accuracy of the overall accounting process that has been followed by the business. Thus, bookkeeping ensures that the record of financial transactions
Its Half solved only
Buy Complete from our online store
MUJ Fully solved assignment available for session Jul/Aug 2021,
Lowest price guarantee with quality.
Charges INR 200 only per assignment. For more information you can get via mail or Whats app also
Mail id is aapkieducation@gmail.com
Our website www.smuassignment.in
After mail, we will reply you instant or maximum
1 hour.
Otherwise you can also contact on our
whatsapp no 8791490301.
Contact no is +91 87-55555-879
Question 2(b)
| SNO | Particulars | L.F | Debit | Credit |
| 1 | Cash AC Dr. Goods Dr. Furniture Dr. To Bank Loan To Captial (Being business commenced with cash, goods, and capital) | 1,00,000 80,000 65,000 | 40,000 2,05,000 | |
| 3 | Bank(SBI) Ac Dr. To Cash (Being bank account opened by depositing 50,000) | 50,000 | 50,000 | |
| 7 | Goods Ac Dr. To Discount To Amit and Co. (Being goods purchased on credit from Amit and co. worth 20,000 at 2% trade discount) | 20,000 | 400 19,600 | |
| 9 | Cash Ac Dr. To Sales (Being cash sales made) | 65,000 | 65,000 | |
| 10 | Ashish and Co. Dr Discount Dr. To sales (Being sales made on credit to ashish and co. worth 25,000 giving 3% trade discount) | 24,250 750 | 25,000 | |
| 14 | Profit and Loss Ac Dr. Bank AC Dr.(Insurance) To Goods (Being goods worth 1500 destroyed by fire and claim of 1000 received ) | 500 1000 | 1500 | |
| 15 | Amit and co. To Cash To Discount | 19,600 | 18,800 800 | |
| 26 | Shares(HDFC) Dr. To Bank Ac (Being shares purchased for 15,000) | 15,000 | 15,000 | |
| 29 | Rent Ac Dr. To Bank Ac (Being Rent paid) | 2,000 | 2,000 |
Question 3(a)
The Trial Balance is not absolute proof of the accuracy of ledger accounts. It is a proof only of the arithmetical accuracy of the postings. The total of debits may be equal to the total of credits yet still there may be errors.
Such errors are not disclosed by a trial balance and they are:
1. Errors of Principle:
An error of principle is an error which violates the fundamentals of book-keeping. For instance, purchase of furniture is debited to Purchase Account, instead of Furniture Account. These types of
Question 3(b)
Financial statements are quantitative statements, based on numbers. However, the information they provide to the users have some important qualitative characteristics that enhances the utility of the same.
Understandability
One of the most important features
Set- II
Question 4(a)
Trading and profit and loss Account
| Particulars | Rs. | Particulars | Rs. |
| To Opening Stock To Purchases 12,000 Purchase return (2000) To Gross Profit To Depreciation on Furniture To advance commission To Establishment Expenses To Tax and Insurance 500 Outstanding 200 Prepaid (50) To Bad debts To Provision for Doubtful debts To Outstanding salary To Net Profit | 3000 10,000 5500 | By Sales 15000 Sales return (1000) By Closing stock By Gross Profit Ac By Commission 500 Advance (100) | 14,000 4500 |
| 18,500 | 18,500 | ||
| 60 100 2200 650 500 300 100 1,990 | 5500 400 | ||
| 5900 | 5900 |
Question 4(b)
There are many reasons because of which there is always some difference in passbook and cashbook balances, and some of these are discussed as under :-
1. Cheques issued but not yet presented for payment in the bank
When a cheque is issued to a creditor by the firm, it is immediately recorded on the credit side of the bank column
Question 5(a)
A drawer or the seller draws a bill of exchange on the drawee or the purchaser in order to ensure that the latter will pay him the amount due. However, if the holder or the drawer of the bill of exchange needs funds or money before the due date or the maturity date of the bill, he may opt for
Question 5(b)
Revaluation Account
| Particulars | Rs. | Particulars | Rs. |
Question 6(a)
Types of Share Capital of A Company
1. Authorized Share Capital
Authorized Share Capital is the total Capital that a company accepts from its investors by issuing shares which are mentioned in the official document of the company. It is also called as Registered Capital or Nominal Capital because with this Capital a company is registered.
2. Issued Share Capital
Issued Share Capital
Question 6(b)
When a company has substantial cash resources, it may like to buy its own shares from the market particularly when the prevailing rate of its shares in the market is much lower than the book value or what the company perceives to be its true value.
This mode of purchase is also
Question 6(c)(i)
Capital Redemption Reserve- Capital redemption reserve account is a type of reserve maintained by a company limited by shares and as the name suggests this reserve deals with shares which are redeemable. The shares which are purported to be redeemed are paid out of the profits of a company. For this purpose, out of the profits, an amount equivalent to the nominal value of the share supposed to be redeemed is transferred to a reserve. This reserve is called a capital redemption reserve account.
A capital redemption reserve account can be used to pay any unissued shares of the company to be issued as fully paid bonus shares to the members of the company. A company buying-back its own